The Indian Gaming Regulatory Act (IGRA) was enacted in 1988 as a federal law.
Purpose of IGRA:
Regulates gaming on Indian reservations through a classification system.
Promotes tribal economic development.
Ensures protection against crime.
Grants federal oversight over gaming operations, with cooperation from state governments.
Key Legislative Cases
California v. Cabazon Band of Mission Indians (1987):
Established that tribes hold sovereign authority to conduct gaming on their reservations.
This ruling laid the foundational legal framework for the IGRA.
Eligibility Requirements for Tribes
A tribe may qualify to conduct gaming under IGRA if:
It is federally recognized.
The gaming occurs within the tribe’s jurisdiction, or it obtains approval from the National Indian Gaming Commission (NIGC).
Classes of Gaming Under IGRA
The IGRA classifies gaming operations into three categories:
Class I Gaming:
Involves games played for minimal prizes.
Regulated solely by the tribal government.
Class II Gaming:
Includes card games and bingo approved by the IGRA.
Subject to standards agreed upon between the tribes and the NIGC.
Class III Gaming:
Refers to all other forms of casino gaming such as slot machines and blackjack.
Requires approval from the Secretary of the Interior and necessitates a tribal-state compact.
Johnson Act Overview
The Johnson Act states that the use of gambling devices on Indian territory is illegal unless permitted by the federal government.
Class III of the IGRA creates an exception to this rule.
Intergovernmental Relationships
Yes, IGRA encourages negotiations between tribes and states regarding gaming regulations.
Gaming must occur on Indian land for tribes to maintain jurisdiction over the operations.
Good Faith Negotiation Requirement
The "good faith" requirement under IGRA stipulates that states should negotiate gaming agreements honestly with tribes.
However, in Seminole Tribe v. Florida, the Supreme Court ruled that tribes cannot sue states for refusal to negotiate in good faith, leading to no enforceable obligation on states' parts to cooperate.
Taxation Policies
Typically, tribes are not subject to federal taxes; however, employees of the tribes must pay income taxes.
States may enter revenue-sharing agreements with tribes concerning gaming operations.
Standards for Class II and III Gaming
For Class II and Class III gaming, state approval is required.
Tribes cannot conduct gaming operations that the state expressly prohibits.
Jurisdiction in Indian Country
The tribal government has sovereign jurisdiction to enforce gaming laws within Indian Country.
State and federal governments have limited authority concerning tribal gaming operations, particularly Class III, which requires compacts with states.
Management Contracts under IGRA
Management contracts for gaming operations are permitted under IGRA as long as they are approved by the National Indian Gaming Commission (NIGC).
This oversight ensures that tribes retain ownership and that contracts remain fair and compliant with legal standards.